Methods of Growth (Large Businesses) Flashcards
1
Q
What are the 4 Methods of Growth?
A
Market Penetration, Market Development, Product Development and Diversification.
2
Q
What is Market Penetration?
A
Attract customers away from competitors to increase sales and therefore increase your market share.
3
Q
What is Market Development?
A
Analysing the way a company’s existing offer can be sold on new markets, which will lead to an increasing sales of products on previously unexplored markets.
4
Q
What is Product Development?
A
Launch new products or services on existing markets .
5
Q
What is Diversification?
A
Risk management techniques that reduce risk by allocating investments across financial instruments.
